What Is a Small Claims Court in Kentucky?
The Kentucky small claims courts are divisions of the district courts set up to settle non-criminal disputes involving money or property value not above $2,500. This $2,500 limit is exclusive of interest and court costs. The small claims courts offer a simplified court procedure that allows parties to resolve their cases inexpensively. Parties in a small claims case are permitted to employ lawyers to handle their cases. According to Kentucky Revised Statute § 24A.230, small claims courts in Kentucky have jurisdiction over:
- Civil actions where the amount in controversy does not exceed $2,500, excluding malicious prosecution, libel, slander, abuse of process, and alienation of affection actions.
- Contracts or agreements for goods and services
Also, the court has the authority to grant relief, garnishment, restore a seized property, or other remedies. Common types of cases heard in the court include:
- Professional negligence, e.g., an improper vehicle repair
- Unreturned security deposit
- Failure of a contractor to meet the expectations of a homeowner when installing building parts, such as a new roof
- Default in the pre-agreed schedule to repay a loan or failure to pay a loan
- Failure to return a property to the original owner
- Dog bites and other personal injuries
How Does the Kentucky Small Claims Court Work?
The purpose of the small claims courts in Kentucky is to simplify the legal processes of minor civil cases, to make quick dissolution accessible to all. Proceedings in the small claims court are held informally, and while still presided over by a judge, parties to a case present their arguments before the judge without an attorney. This self-representation is referred to as "pro se," which means "on one's behalf." In a small claims court case, the complainant is called the plaintiff, while the respondent is called the defendant. These parties can be persons or businesses.
A small claim in Kentucky must be for personal property or money not above $2,500. A litigant who has a claim over $2,500 can choose to claim only $2,500 to use the small claims court instead of filing in another division.
In filing a small claims action, a plaintiff must provide the defendant's accurate address as a failure to serve the defendant will prevent the case from proceeding. The plaintiff is also expected to pay the filing fee for the case. On receiving the summons and petition, the defendant can decide to file a counterclaim if they believe the plaintiff owes them. As with the original claim, the counterclaim must not exceed $2,500. The defendant can also choose to settle out of court with the plaintiff to avoid a court trial. In Kentucky, plaintiffs are limited to filing no more than 25 small claims in a calendar year.
During the court hearing, the involved parties are allowed to present their case, evidence, and call witnesses. The judge will make a ruling after hearing both sides and enter a judgment stating who won, lost, and how much is to be paid. This judgment is legally enforceable. As such, the winner of the case can proceed to collect the court's judgment.
The losing party in a small claims court case may decide to appeal the case to contest the judgment. The party must submit a Notice of Appeal within ten days of the judgment entry and a Statement of Appeal within 30 days of filing the Notice of Appeal with the circuit court.
How to Take Someone to Small Claims Court in Kentucky
A plaintiff can start a small claims case in Kentucky by filing a small claims complaint (form AOC-175) at the district court clerk's office. The plaintiff must ensure that the address of the defendant is correct in the filing. The party is also expected to explain the claim against the defendant(s) clearly.
If the complaint is against a business, the plaintiff must determine who in the company can be served. The Business Entity Search app on the Kentucky Secretary of State's website can be used to find out the incorporation information of a business and acquire the names and addresses of their process agents. The plaintiff needs to identify these parties to accurately summon them and avoid making the case too complex for the small claims court.
When filing, the plaintiff must pay the designated filing fees, which includes:
- $33.25 to file a complaint with the clerk
- $9 to send the summons by certified mail, and
- $40 to have the sheriff deliver the summons.
A plaintiff who cannot afford to pay for the petition must file a motion to proceed in forma pauperis(without cost). The party will need to attach an affidavit explaining the inability to pay. A judge decides whether to grant this motion or not.
After filing and notarizing the claim at the clerk's office, the plaintiff must serve the defendant. The court will arrange a trial date, which shall not be less than twenty days or more than forty days after service. The clerk will inform the defendant of the plaintiff's claim by sending a copy of the claim and the summons informing the defendant to appear in court on a specific date. The notice will also warn the defendant that a failure to appear may result in the default judgment being entered against them. It is the plaintiff's responsibility to ensure that the clerk serves the defendant with the summons.
After receiving the summons and examining the petition, the defendant can opt for an out-of-court settlement with the plaintiff. An out-of-court settlement allows the defendant to pay the demanded amount or resolve the dispute without paying. An out-of-court settlement must be documented with the parties' signature, and this agreement must be sent to the court to record the development.
However, if the defendant decides that they also have a case against the plaintiff, they may file a counterclaim against the plaintiff using Form AOC-185 and serve this counterclaim on the plaintiff. A counterclaim must be filed with the clerk, and the plaintiff must receive a copy at least five days before the hearing date.
It is imperative that a party who received a summons for a small claims case be present in court on the fixed date so that they do not incur a default judgment. The hearing in a small claims court is informal. However, both parties will have to express their claims clearly and present credible evidence witnesses that support the case to obtain a favorable disposition.
A party to a small claims action who disagrees with the court's decision can choose to appeal. The entity must file a Notice of Appeal with the circuit clerk's office within ten days of the judgment and file a Statement of Appeal no more than thirty days after filing the Notice of Appeal. A fee is required to file this appeal. It is the appellant's responsibility to deliver a copy of the signed Statement of Appeal to the other party. The circuit court judge will not accept new evidence during the appeal but will only review the records from the small claims court to ensure that the law was followed correctly. An appeal increases the complexity of a case; therefore, litigants should seek the advice of an attorney before beginning one. The appeals process introduces additional fees; however, the losing party will still need to pay the original judgment along with any court-ordered costs.
A judgment in a small claims court entitles the winning party to collect a money judgment or property from the losing party. The losing litigant is required to pay within ten days of the decision. Failure to comply may lead to additional legal actions, such as a garnishment of wages or bank accounts, judgment liens, or seizure of property.
How Much Can You Sue For in Kentucky Small Claims Court?
Kentucky small claims courts limit the amount recoverable in damages to $2,500. With this figure in mind, plaintiffs can sue to recover money or property as long as their claim does not exceed that maximum. Plaintiffs whose claims exceed the amount, but still want to use the informal and simplified procedures of the small claims court, can opt for a reduced value within the court's limit. Individuals intending to file a case in the small claims court should also note that certain case types cannot be heard in the small claims court. These cases include slander, libel, alienation of affection, landlord and tenant eviction, and abuse of process.
How to Defend Yourself in Kentucky Small Claims Court
The Kentucky Administrative Office of the Courts and the Attorney General's Office have prepared a Small Claims Handbook to guide individuals in the state on how to go about a small claims case.
The defendant's journey to the small claims court begins when they receive a summons with a copy of the small claims complaint. The complaint will show the plaintiff's name, their claim, and the amount of property or money the plaintiff believes the defendant owes. A key strategy for the defendant to defend themselves is to be present in court on the date highlighted on the summons, as failure to attend court will lead to a default judgment that satisfies the plaintiff.
While planning to be present, the defendant can try to settle the dispute with the plaintiff. If the defendant can negotiate with the plaintiff, it would save both parties considerable time and money. If a dispute is handled out of court, both parties must complete the Settlement Agreement & Order (AOC-199) form and return it to the clerk for filing.
If a settlement cannot be reached, the summoned party should plan their defense. A clear and accurate re-telling of facts will be necessary, with evidence. The defendant should have original or copies of letters, receipts, contracts, checks, police reports, photographs, leases, or other evidence. If the case requires witnesses, the defendant should inform them on time to ensure their presence on the day of the hearing.
A defendant might be convinced that the plaintiff owes them money. If this is the case, the party can file a counterclaim after receiving the summons and petition. The defendant will need to complete a Small Claims Counterclaim (AOC-185) form and return it to the district court clerk's office no less than five days before the scheduled court date. There is no filing fee for the counterclaim as long as it does not exceed $2,500.
How Long Do You Have to Take Someone to Small Claims Court in Kentucky?
It is important for parties who want to use the small claims court to resolve a matter to file their claim quickly. This is because the law limits the period within which a case can be brought before the court. This length of time is called the statute of limitations. For a small claims case, the limits are as follows:
- Five years for oral contracts
- Fifteen years for written contracts
- One year for personal injury claims
- Five years for real property damage
- Three years for personal property damage
Knowing these limitations is important because if a case is filed in the small claims court after the statute of limitations has elapsed, the judge will dismiss the claim, and the plaintiff will lose their filing fee and claim.
What Happens if You Don't Show Up for Small Claims Court in Kentucky?
When a defendant receives a summons informing them that they have been sued in a small claims court, they must appear in court on the date written on the summons. Failure to appear on the date scheduled may cause the judge to enter a default judgment against the party for the amount being claimed by the plaintiff. The judge may also include the court costs of the plaintiff. This judgment can be enforced by court order, and the defendant's wages can be garnished and their properties seized to pay the plaintiff. Nevertheless, defendants can appeal a default judgment within ten days of its entry on the court's docket.
However, a plaintiff who does not show up in court will have their case dismissed. However, they might have a chance to file the claim again upon providing a good reason for missing court. If the defendant filed a counterclaim, the judge might rule in favor of the defendant.
What are Small Claims Court Records in Kentucky?
Kentucky small claims court records are the records created and submitted during small claims proceedings held in Kentucky. These records are publicly available and include docket information, evidence from parties, court orders, petitions, motions, decisions, and transcripts.
Where Can I Find Kentucky Small Claims Court Records?
The Kentucky Open Records Act, enacted in 1976, ensures the right of access of the public to all public records. This means that all designated Kentucky court records are available to the public to inspect and copy unless exempted for specific reasons. The first step to finding court records is to determine the court that has custody of the record. The clerk of that court will be responsible for providing the record. For small claims court records, it is the district court clerk's office.
Small claims records may be accessed in person, by mail, or viewed online using the Kentucky Court of Justice CourtNet 2.0 website. District court locations in the state are available on the Kentucky Court of Justice court finder page.
These records can also be obtained online using reputable third-party online services, which allow the public to search for records with name, state, and other search values.
